Bill > SB144

This bill creates a new legal framework for Limited Worker Cooperative Associations (LWCAs) in Maryland, establishing them as a specific type of limited liability company with unique organizational and operational characteristics. The bill defines an LWCA as a Maryland limited liability company that elects to be a worker cooperative, with a focus on democratic self-management by worker members. Key provisions include allowing multiple membership classes, requiring at least three worker members to start a business, and establishing specific governance rules such as annual assembly meetings and a board of representatives. The cooperative agreement must outline details like capital structure, membership rights, profit allocation, and voting procedures. Notably, the bill emphasizes that worker members are not presumed to be employees and provides flexibility in voting power allocation, which can be based on one member/one vote, number of members, or patronage. The bill also addresses dissolution procedures, internal capital accounts, and exempts certain membership interests from registration requirements. LWCAs can choose to be a "collective worker cooperative" with only worker members managing affairs, and the legislation aims to provide maximum democratic self-management for worker members while creating a structured legal framework for these unique business entities.

Business and Industry, Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0144?ys=2025RS